Storage tanks are seen at the Petroineos Ineos oil refinery in Lavera, France, March 29, 2022. REUTERS/Benoit Tessier

LONDON, April 5 (Reuters) – Oil prices rose on Tuesday as the United States and Europe planned new sanctions to punish Russia for alleged war crimes in Ukraine, raising concerns about a tightening global supply, while nuclear talks between Iran and world powers stalled.

Brent crude rose $1.17, or 1.1%, to $108.70 a barrel at 0952 GMT. US West Texas Intermediate rose $1.15, or 1.1%, to $104.43.

“With the European Union working on new sanctions that could target the Russian oil industry, crude prices could rise slightly in the near term,” said FXTM analyst Lukman Otunuga.

The West is planning new sanctions against Russia for the killings of civilians in Ukraine, with US President Joe Biden’s national security adviser saying that new US sanctions against Moscow would be announced this week. Read more

There were growing expectations that Europe would take steps to reduce transactions with the Russian energy sector, which would further squeeze supplies, said Jeffrey Halley, senior analyst at OANDA.

To calm oil prices, countries allied with the United States last week agreed to a coordinated release of oil from strategic reserves for the second time in a month. However, Japanese Industry Minister Koichi Hagiuda said on Tuesday that the International Energy Agency (IEA) was still reviewing the details of the release. Read more

Oil prices jumped more than $2 after his comments.

Ole Hansen, head of commodities strategy at Saxo Bank, expects oil prices to trade between $90 and $120 a barrel in the second quarter.

“Key events that could trigger additional uncertainty remain the prospect of an Iranian nuclear deal, Venezuela being allowed to increase production and, most importantly, an increase in US shale oil production,” he said. he declares.

The United States still believes there is an opportunity to bridge remaining differences with Iran in talks over its nuclear program, State Department spokesman Ned Price said Monday. Read more

Any signs that the United States and Iran are moving closer to a nuclear deal, which would return up to 1.3 million barrels per day of Iranian oil to world markets, would weigh on oil prices, according to BCA research.

The end of the refinery maintenance period in Europe also provided some support for oil prices, analysts said, as it will allow for higher crude consumption.

Reporting by Bozorgmehr Sharafedin in London Additional reporting by Liz Hampton in Denver and Isabel Kua in Singapore Editing by Mark Potter and David Goodman

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